Hospital asks City to defer electrical work fees

The new Emergency Department at Biggs-Gridley Memorial Hospital, set to break ground this summer will require substantial electrical upgrades by the City of Gridley's Electrical Department.

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By Lisa Van De Hey

Gridley Herald - Gridley, CA

By Lisa Van De Hey

Posted Feb. 22, 2013 at 12:01 AM

By Lisa Van De Hey
Posted Feb. 22, 2013 at 12:01 AM

The new Emergency Department at Biggs-Gridley Memorial Hospital, set to break ground this summer will require substantial electrical upgrades by the City of Gridley's Electrical Department. The new Emergency and Radiology Departments will require a power addition for a new transformer to power their CT trailer connection which has to be relocated in preparation of the new Emergency Department addition.

"Currently the hospital serves 7,000 patients in the ER each year and the hospital estimates with the new ER at least 10,000 will be seen each year. The addition of the Emergency Department will have a tremendous impact for the communities the hospital serves," City Administrator Rob Hickey's report stated at the Tuesday night Gridley City Council meeting.

The hospital requested a deferment of the payment for the City's estimated $101,946.90 for the work to be done to upgrade the power capability until the project is completed in 2014.

Hospital CEO Wade Sturgeon explained to Council members that if the payment could be deferred until the work is completed the hospital could keep cash reserves required to fund current operations and pay for the project out of funds received for the construction.

The hospital offered to secure the agreement by posting equipment as collateral and to pay interest that would have been accrued.

Mayor Jeff Draper asked what the LAIF (Local Agency Investment Fund) rate was and was told the rate is .03 percent.

Electric Supervisor Daryl Dye told Council members he has the manpower to do the work and it would take three weeks to complete. He also explained that the City already has the equipment needed so the only money the City would put out would be labor and the equipment used could be restocked at a later time.

Hickey told Council members that the hospital would provide a list of assets in the amount of $100,000 or $125,000 if required.

"They aren't going anywhere. This is a project that will benefit the community and is completely transparent. It is a benefit to the community to see the hospital and City work together," Hickey stated.

Hickey stated he would structure the agreement between the City Attorney and hospital administration to bring back to the Council for approval.